I am advised by Revenue that the following table sets out the total first and full year yields to the Exchequer in the manner outlined by the Deputy including the tapering at a rate of 2% per €1,000 of the PAYE, EIC and Personal Credits for all income earners whose income is between €100,000 and €150,000 per year resulting in no entitlement to these tax credits when income is in excess of €150,000. The Widowed Person or Surviving Civil Partner Credit of €2,190 is similarly tapered out for incomes between €100,000 and €150,000 per year. These estimates are based on tax units. As the Deputy will be aware, jointly assessed couples are considered a single tax unit. Therefore the variables have been calculated on the basis of the combined income of the tax unit, as individual incomes for each member of the tax unit are not available. Therefore, the estimates insofar as they relate to this cohort of tax units are very tentative.
This estimate also includes the introduction of a new Universal Social Charge (USC) band and various rates on gross income in excess of €150,000. It should also be noted that this costing retains the 3% USC surcharge on individuals who have non-PAYE income that exceeds €100,000 in a year. All other aspects of the current USC structure also remain unchanged.
|
|
First Year
€M
|
Full Year
€M
|
|
Credit Tapering and 2% USC Increase
|
377
|
486
|
|
Credit Tapering and 3% USC Increase
|
427
|
554
|
|
Credit Tapering and 4% USC Increase
|
477
|
622
|
|
Credit Tapering and 5% USC Increase
|
527
|
691
|
The estimates above are from the Revenue tax forecasting model using latest actual data for the year 2014, adjusted as necessary for income, self-employment and employment trends in the interim. They are estimated by reference to 2017 incomes. They are provisional and may be revised.
